If the LBO is structured as a direct merger in which the seller receives cash for stock, the lender will make the loan to the buyer once the appropriate security agreements are in place and the target's stock has been pledged against the loan. The target then is merged into the acquiring company, which is the surviving corporation.

Question

Quizplus · Accepted Answer

This statement accurately describes the process of a direct merger LBO.

If the LBO Is Structured as a Direct Merger in Which